The Brazilian Securities and Exchange Commission (CVM) opened a public consultation regarding “FÁCIL”, a new system that intends to simplify rules for smaller companies.
Such initiative seeks to simplify and reduce bureaucracy in regulation, promoting a more favorable environment for the development and competitiveness of these companies in the capital market.
We highlight below 4 of the key proposals for the program:
1. Differentiated Disclosure Regime: Establishes a simplified regime of requirements for the provision of periodic and occasional information, reducing the number of documents to be disclosed in the market and the frequency of such disclosures. The companies may use a single annual form – or on the occasion of a public offering – instead of the reference form, prospectus and sheet, in addition to the fact that accounting information may be published semi-annually – replacing the mandatory quarterly.
2. Facilitation of Fundraising: FÁCIL provides easier conditions for raising funds in the market, with the relaxation of certain requirements related to the issuance of securities, reducing costs and complexities. Among them is the public offering of securities of up to R$300 million in a “direct offering”, without the need to register with the CVM and hire a lead coordinator.
3. Holding a meeting without requiring rules for remote voting rules for remote voting.
4. Cancellation of registration via public offering with a successful quorum reduced to half of the shares in circulation, and no longer 2/3, as Brazilian legislation demands nowadays.
The public consultation will allow stakeholders, including businesspeople and experts, to present their contributions and suggestions for the project. The sector’s active participation is crucial for the formulation of rules that effectively meet the needs of smaller companies, ensuring a balance between protecting investors and promoting business development.
